U.S. Companies Added 110K Jobs in October
Companies added 110,000 jobs in the U.S. last month following a revised 116,000 gain in September, according to ADP Employer Services. The U.S. Department of Labor will release its monthly jobs report on Friday.
The ADP report, based on company payrolls, upwardly revises a previously reported 91,000 gain in September, when the Labor Department’s data showed an increase of 137,000 in private payrolls.
According to this morning’s report, goods-producing industries, which include manufacturers and construction companies, cut 4,000 jobs, while employment at factories dropped by 8,000. More than making up for their decline, service providers added 114,000 jobs in October.
On average, companies employing more than 499 workers cut 1,00 jobs. However, medium-sized businesses, with 50 to 499 employees, took on a total of 53,000 new employees last month, while small companies accounted for 58,000 new hirings.
“The recent trend in private employment is probably below a pace consistent with a stable unemployment rate and reflects the sluggish of pace of GDP growth,” said Joel Prakken, chairman of Macroeconomic Advisers LLC in St. Louis, which produces the data with ADP.
Another report today showed that employers announced 13% more job cuts last month than in October 2010, with government agencies and financial companies leading the way. A total of 42,759 job cuts were announced last month.
FedEx (NYSE:FDX) is among the companies adding jobs, announcing last month that it would hire 20,000 seasonal workers for the holidays — 18% more than last year. Conversely, Amgen Inc. (NASDAQ:AMGN), the world’s largest biotechnology company, announced plans to layoff 380 employees in its research and development division.
The ADP report is based on data from roughly 337,000 businesses across the U.S., employing over 21 million workers on payrolls.